Why A Business Plan is Critical to Growth
Feb 27, 2020
Feb 27, 2020
A business plan is a tool for understanding how your business is constructed and once completed it should be continually referred to. The plan should become a document used to monitor progress and ultimately drive the direction of the business. There are various types of business plans used for biotech companies all of which are written depending on which stage the company sits within the business life cycle.
For a start-up company wishing to commercialise a unique manufacturing process, product or service the initial business plan will be an important document for raising capital or finding strategic partners. A company already well established within the biotech market must have a business plan which reflects the strategic objectives of the company and may even encompass a section on exit strategy in preparation for future sale.
Once you have a written business plan it must be reviewed and agreed upon by all stakeholders, so all are working to achieve the long-term goals. The business plan can include but not limited to; budget, team accountability, marketing, operations and your value proposition. Companies often incorporate a strategic marketing plan into the business plan, as this will outline key tactics required to develop the company from where it is now to where it wants to be.
When deciding to undertake the task of writing a business plan it can be beneficial to work with a third party such as Pivotal Scientific to ensure that there is no sub-conscious bias towards your company. This will ensure that an open, honest and comprehensive review of the business is undertaken. The team will also complete an extended amount of market analysis including competitive analysis, market size, potential customer segments, challenges and opportunities the biotech market presents.
Pivotal Scientific recommends a company starts reviewing any current business plans at the beginning of the year as this gives time for any updates or changes to be written before the start of the new financial year. If a company is running off a 3- or 5-year business plan these must still be evaluated and reviewed. This review can include analysis of your customer segments, competitors and industry trends so that you can adjust your plan accordingly. Lack of adjusting your long-term plan in response to new data can easily lead to loss of market share, reduce profitability and overall strategic drift.
If you do not have a business plan, then writing one in March/April time is advantageous as financial budgets and forecasts will also be written then in preparation for the new financial year. Once the plan is written and agreed upon, we recommend the business objectives are shared with all departments. Each department can then set their own department KPIs which feed into achieving the company’s goals.
Should you have any questions on writing an effective business plan or if you would like Pivotal Scientific to review and comment on your current plan please do not hesitate to contact us.